Private Equity Group In Exclusive Talks With Ukrop’s For Buyout
August 18, 2009 - 1:29 pm
By Trevor Dickerson
Grocery industry publication Supermarket News is once again fanning the flames of the “Ukropalypse.” The phrase, coined by many Richmonders on social networking sites like Twitter, came about after speculation of a Harris Teeter buyout last month. The most recent report, however, suggests that Harris Teeter was outbid to purchase the Richmond supermarket chain.
So who’s still in the game? According to Supermarket News, an unnamed private equity group is in exclusive talks with the Ukrop family to acquire the 28 area grocery stores.
But don’t run off to the Short Pump Ukrop’s to hoard the Rainbow Cookies, chicken salad and White House Rolls just yet. Sources suggest that if a sale did indeed take place, the equity group would likely retain the Ukrop’s name and values, such as being closed on Sundays and not selling alcohol.
What are your thoughts about the speculation? Leave your comments below.
We’ll continue to follow this story as it develops.
I am anxious to hear more about this news. I would love it if they kept everything the same, of course…because where else will I find the outstanding customer service, delicious cookies, fried chicken and other delectable goods that only Ukrops can conjure up?!
Ahh, but only time will tell where it goes from here!
While I agree that we should expect most everything to remain the same (Ukrop’s name & brands, employees, stores, etc.), the sole reason why a private equity group would be interested in taking over is to generate growth and increase profits, which would include opening on Sunday and selling alcohol in the short-term and adding more stores in the long-term. Otherwise, I wouldn’t see the point!
somebody wanna tell me exaclty what a “private equity group” is? I’m not super business world savvy.
I, for one (and probably the only one) would LOVE to have Harris Teeter here in Richmond. They don’t necessarily need to buy out Ukrop’s but I would like to shop at Harris Teeter.
This is the ultimate of unknowns.Are they local or not?Are they in any other aspect of the grocery business or not?What are their goals?Short term or long term?How much of the purchase will be financed which requires repayment at some point?Contrary to some people’s hopes,this development if true will mean underperforming locations,products,services and advertising (which is what charitable and philanthropic actions really are) will be looked at very deeply and many will be cut.How much involvement will the Ukrop family have?Will this be more of a partnership than a take over?Personally I believe if Ukrops does not modernize it’s philosophy it is doomed to ultimate failure.Especially the Sunday issue which has become a major shopping day.Whatever this will or will not be,they best get it done soon.I hear Walmart is looking in Powhatan and with Kroger and Food Lion continuing to expand time is running out!
I guess if everything stays the same I will continue to not shop at Ukrops. High prices, closed on Sundays and other holidays, and no alcohol sales equals a poor business model. I was hoping a more customer friendly store was in the future. Needless to say, I am disappointed
I hear employees are leaving left and right.
Good riddance. Any company that sells cigarettes yet refuses to sell alcohol because of moral principles is clearly hypocritical.
I see that Ukrop’s is limiting fuelperks now and imposing restrictions on use and earnings. It just goes with what i’ve heard about it being cancelled at the end of the year after the holidays. They don’t want to impact their holiday sales.